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What is unique about binary options trading is that investors can take fixed odds in the direction of the market, unlike any other product on the market. What this means is that you know exactly how much money you risk and how much money you will make if you made the correct prediction. As these operations have short durations of a few days or hours, positions are closed very fast and you know the result soon.
This is very different from trading the markets of the old-fashioned way, where traders can hold their positions for an indefinite period of time, with NLP going up and down every day as the market fluctuates. But with digital options (another name for binary options) position does not fluctuate with the market. It is either in money (profitable) or out of the money (unprofitable).
Hence the name of the binary, as there are only two cases, right or wrong. This simplifies its business strategy and eliminates headaches. As everything is determined before pulling the trigger, if you trade there is nothing to worry about since the position will take care of itself.
Of course, if you decide to trade binary options, does not mean that it is not necessary to study market behavior and trends. Accurate prediction is still the basic skill development, but what is easier is how trades are implemented.
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